ABSTRACT
In discussing the difficulties of barter and origin of money, most books, particularly textbooks, almost invariably refer the reader to William Stanley Jevons. However, as stated in Chapter 6, there is no room in Jevons’s utility theory for the notion of the difficulties of barter or even money itself. Thus, when it comes to monetary theory, Jevons’s utility theory is of very little use. Also, compared to Walras’s ostentatious general equilibrium theory Jevons’s exchange theory appears quite dull. Most orthodox economists, therefore, have historically shown a preference for Walras’s theory as opposed to that of Jevons. Yet, even in Walras’s general equilibrium theory one cannot find the notion of difficulties of barter and the necessity of money, as shown in Chapter 6. But could the Walrasian system be amended to include money, particularly fiat money?
